NMPF used its opportunity to file comments to a USDA organic origin of livestock docket on Dec. 2 to keep organic-dairy farming accessible to farmers considering entry into or expansion within the business – and used a novel analogy connected to the plant-based foods debate to remind government regulators of their responsibilities.

The dairy-centered portion of the docket, which was the focus on NMPF’s comments, sought input on two key issues: how a one-time transition requirement is implemented, and how nonorganic breeder stock can properly be integrated into the organic program.

On the transition issue, NMPF emphasized in its comments that the transition from conventional to organic shouldn’t be tied to the producer, but instead to the certified dairy operation, arguing that eliminating a farmer’s ability to transition a second or a third farm from conventional to organic – which is being proposed by organic-farm advocates seeking to raise barriers of entry to their business — is overly restrictive and unnecessary.

NMPF and others cited numerous examples of how this could be problematic. For example, should a farmer transition a farm to organic, then decide to relocate to a different part of the country, that farmer could not transition another farm to organic. NMPF questioned whether such a restriction could meet constitutional scrutiny and is hopeful that USDA will revise its proposal on this issue and not deprive a farmer’s right to transition whatever farms he/she want to.

The second, more controversial issue, involves the use of nonorganic breeding stock to produce organic heifers. When Congress passed the Organic Food Production Act as part of the 1990 Farm Bill, it specifically stated that breeding stock from any source, organic or nonorganic, could be used to produce organic heifers if that breeding stock were organically managed for at least the last third of gestation.  NMPF believes this is appropriate, arguing that advocates who want only organic breeding stock to produce an organic heifer – again, reducing competition in the organic sector — are taking a position inconsistent with current law.

NMPF’s comments to USDA suggests that the agency either work with Congress to change the law or make it abundantly clear that when the rules are followed (e.g. currently a bred nonorganic cow must be raised organically for at least last trimester), nonorganic breeding stock can produce organic heifers. NMPF’s comments also note that from the time a heifer whose mother began feeding an organic diet to when that heifer is milked, that heifer would have spent at least 27 months managed as organic — much more time than the 12 months used for a one-time herd conversion, leaving no scientific basis for such a restriction.

Finally, the comments point out that there is no violation of the one-time transition rule when using nonorganic breeding stock, as that breeding stock never transitioned – tying the two issues in its main comments.

 

Inaction not an option 

NMPF also supplemented its comments with an additional filing to the docket, noting that whatever agencies may or may not want to do, their discretion to enforce or not to enforce their own rules is increasingly limited, as shown in a separate issue – NMPF’s urging of the FDA to enforce its own rules on plant-based beverages.

In the case of the transition allowance, NMPF argued that, rather than create a stricter standard that may not comply with law, a simple clarification that the Act is correct would ensure consistency. On the organic breeder stock, NMPF also pointed out that agencies don’t have discretion to enforce or change Congressional Acts.

Pointing out that a court recently ruled that FDA doesn’t have unfettered discretion not to enforce provisions that Congress has put in place, USDA doesn’t have this right either. Therefore, it shouldn’t entertain a rule that disputes the Organic Food Production Act.

“We cannot support FDA not enforcing the standards of identity for labeling food products, nor can we support FDA rewriting the Congressionally-enacted Butter Act,” NMPF wrote in its comments “By analogy, NMPF cannot support a USDA rewrite of the Congressional expression that nonorganic breeder stock can produce organic heifers when those heifers are raised and managed under the organic program requirements. USDA must finalize this part of the proposed rule as proposed, which allows for nonorganic breeder stock’s ability to produce organic heifers under rigorously mandated NOP conditions.”

The full comments can be found here.

The House Judiciary Committee, with NMPF’s support, on Nov. 21 passed the “Farm Workforce Modernization Act” (H.R. 5038), a bipartisan agriculture labor bill introduced late last month by Immigration Subcommittee Chair Zoe Lofgren (D-CA) and Congressman Dan Newhouse (R-WA). The legislation, which may pass the full U.S. House of Representatives as soon as this week, would provide legal status to current agricultural workers and their families and reform the H2A guest-worker visa program to permit year-round agriculture to participate, two workforce needs vital for dairy.

Republican and Democratic committee members spoke during the committee markup about the crucial need to address the labor crisis, thanking Lofgren and others for bringing forward a bipartisan ag labor bill. Some members opposed the bill in its current form and expressed a willingness to work to improve the measure as it moves forward. During the markup and in subsequent interviews, Chair Lofgren indicated she would continue working to address members’ concerns with the bill, with close attention being paid to maintaining the bipartisan support that has helped move the measure thus far.

NMPF appreciates the efforts of Chair Lofgren and Rep. Newhouse and has worked closely with them throughout this legislative process. NMPF worked to build support among member cooperatives and state dairy associations via a Nov. 18 letter in which more than 300 agricultural organizations urged the House to move this bill forward. While it is not perfect, the bipartisan bill is a critical starting point to reforming U.S. agricultural labor policy.

“Our dairy farmers face unique workforce challenges that require a solution from Congress,” said Jim Mulhern, NMPF President and CEO. “Advancing the Farm Workforce Modernization Act is essential for us to have the opportunity to continue bipartisan efforts to address the labor crisis hurting dairy farms across the U.S. NMPF thanks Chairwoman Lofgren and Congressman Newhouse for their bipartisan leadership in drafting a bill that’s capable of moving ag labor reform through Congress.”

NMPF is hopeful that the legislation will be considered on the House floor in December. Successful House passage of H.R. 5038 is expected to tee up bipartisan discussions to produce ag labor reform in the Senate.

Lawmakers and the White House – and NMPF — remain hopeful that the United States-Mexico-Canada Agreement (USMCA) may pass Congress in 2019, possibly as soon as this week. NMPF has kept up the drumbeat for USMCA passage this year, proactively meeting with key legislators, engaging with agricultural allies, and working to ensure that the dairy-farmer voices are heard loud and clear on Capitol Hill.

NMPF in October worked with USDEC to organize a farm and food coalition letter to every member of New York’s congressional delegation. This letter cited the critical benefits that agricultural producers and food manufacturers, including dairy farmers and processors, bring to New York. NMPF also helped rally support for USMCA in the state of Washington by working with one of our members and securing placement of a letter to the Seattle Times written by a dairy farmer whose farm relies on trade.

NMPF is poised to engage quickly with lawmakers once implementing legislation is sent to Congress, given the dwindling numbers of legislative days.

Cooperatives Working Together assisted member cooperatives in securing sales contracts to send 2.8 million pounds of American-type cheese, 1.3 million pounds of whole milk powder, and 262,350 pounds of cream cheese to customers in Asia, the Middle East, Central and South America, and Oceania in November. The products will be shipped during the months of November 2019 through May 2020.

Member cooperatives’ sales activities through November bring the year-to-date CWT-assisted export sales to 46.7 million pounds of America-type cheeses, 4.6 million pounds of butter, and 45.1 million pounds of whole milk powder, 123,458 pounds of anhydrous milkfat, and 6.2 million pounds of cream cheese. The milk equivalent of these sales is 916.7 million pounds on a milkfat basis.

Assisting CWT member cooperatives gain and maintain world market share through the Export Assistance program positively impacts all U.S. dairy farmers by strengthening and maintaining the value of dairy products that directly impact their milk price. It does this by expanding the demand for U.S. dairy products beyond the domestic market thereby increasing the total demand for U.S. farm milk.

The amounts of dairy products and related milk volumes reflect current contracts for delivery, not completed export volumes. CWT will pay export assistance to the bidders only when export and delivery of the product is verified by the submission of the required documentation.

All cooperatives and all dairy farmers benefit from CWT’s activities and should add their support to this important program in 2019 and beyond. Membership forms for 2019-2021 are available at http://www.cwt.coop/membership.

NMPF and 33 other agricultural organizations sent a letter last month to the House Ways and Means Committee expressing strong support for a “Phase 1” trade agreement with Japan while emphasizing the need to continue Phase 2 of the negotiations.

This year has been critical for expanding trade opportunities for U.S. dairy exports. In September, the U.S. and Japan struck a so-called Phase 1 trade deal that improves market access for U.S. dairy products in this growing market. Japan approved Phase 1 U.S.-Japan deal Dec. 4, clearing the path for the agreement to be implemented on Jan. 1. That would then be followed by “Phase 2” – a more comprehensive deal that could include more gains for dairy.

The letter, signed by NMPF and groups including the U.S. Dairy Export Council, International Dairy Foods Association, and the Corn Refiners Association, reiterates that a Phase 1 agreement “is critical to our economic prosperity and strengthens the U.S. food and agriculture sector by increasing the competitiveness of American farmers, ranchers, and food exporters in the Japanese market.” But it also notes that Phase 2 negotiations are necessary to “build on the market access gains” already achieved and address additional tariff and non-tariff barriers affecting the exports of U.S. dairy, beef, pork, poultry, fruit and vegetable, grains and other agricultural and food products.

The initial agreement makes significant headway in helping to close the gap between U.S. suppliers to Japan and some of our key competitors. To deliver the full range of access sought by the U.S. dairy industry and ensure U.S. dairy exports can most effectively compete in Japan, however, more work is needed

Timing on a Phase 2 agreement remains uncertain. The House Ways and Means Committee on Nov. 20 held a hearing on the Phase 1 deal and the prospects for a comprehensive deal. NMPF will continue its proactive engagement on this issue in order to achieve a Phase 2 agreement that builds upon the trade deals already secured by key dairy competitors.

The National Milk Producers Federation thanked Senator Tammy Baldwin (D-WI) for her advocacy for public health and labeling transparency in her questions for Dr. Stephen Hahn during last month’s hearing on his nomination to be Commissioner of the U.S. Food and Drug Administration. Hahn’s nomination was later advanced to the Senate floor on Dec. 3.

Sen. Baldwin serves on the Health, Education, Labor, and Pensions Committee, which must review and vote on Dr. Hahn’s nomination before it can be considered by the full Senate. In response to a question from Sen. Baldwin asking him whether and when the FDA will begin enforcing its own labeling standards, Dr. Hahn voiced his support for “clear, transparent, and understandable labeling for the American people.

“The American people need this so that they can make the appropriate decisions for their health and for their nutrition. I very much will look into this issue,” Dr. Hahn said, adding he would “look at this as soon as I am confirmed.” Video of Dr. Hahn’s exchange with Sen. Baldwin is here.

“As the nation’s top health official, Dr. Hahn would face many challenging issues, labeling integrity high among them. It’s heartening to hear the nominee pledge that an FDA under his leadership will immediately examine this crucial unfinished business,” said Jim Mulhern, president and CEO of NMPF.

“Given his stated commitment to science- and data-based decision-making and his concern for public nutrition, we expect FDA will soon begin enforcing its own standards – which clearly reserve dairy terms for real dairy products, not plant-based imposters who mislead consumers by mislabeling nutritionally inferior products. We thank Senator Baldwin for pressing for urgent action today as part of her ongoing efforts to resolve this health and nutrition issue.”

NMPF has been long advocated for labeling transparency and has been encouraged by recent overdue FDA attention to the issue. NMPF looks forward to working with Dr. Hahn upon his confirmation as the FDA’s Commissioner.

With the deadline for 2020 farmer Dairy Margin Coverage program signup looming on Friday, Dec. 13, forecast margins remain high for 2020.

The National Milk Producers Federation is urging producers to visit their local Farm Service Agency offices to take advantage of the DMC, which is meant to provide risk management tools for farmers and provide some relief against financial hardship. The popular program paid dairy farmers more than $308 million in benefits for 2019.

All farmers who signed up for 2019 are encouraged to re-enroll for 2020, given the unpredictability of dairy markets. Farmers who elected to enroll for the full five-year life of the program need to visit their FSA office to keep their information current for the upcomingina year.

In October, the milk price/feed cost margin calculated under the Dairy Margin Coverage program was $10.88 per cwt., $0.46 per cwt. higher than the September DMC margin and remaining above the threshold below which payments are triggered. The October all-milk price was $0.60 per cwt. higher than September’s, while the DMC calculated feed cost for September was $0.14 per cwt. higher than September’s, mostly due to a higher soybean meal price.

As of December 4, USDA’s DMC Decision Tool, which can be accessed online, projected the margins shown in the chart below. The DMC margin is currently projected to remain above $9.50 per cwt. for the remainder of 2019 and during all of 2020.

NMPF has a resource page on its new website with more information about the program, including a 4-page brochure summarizing key facts about the DMC and a video specific to 2020 signup.

ARLINGTON, VA – The National Dairy Farmers Assuring Responsible Management (FARM) Program, the dairy industry’s on-farm quality assurance program, today released a proposed Workforce Development evaluation tool for input from industry stakeholders.

FARM Workforce Development (WFD) is the FARM Program’s newest initiative. It focuses on human resources and safety management and has brought together stakeholders from the entire dairy value chain to create educational materials for U.S. dairy owners and managers.

FARM WFD is developing an on-farm evaluation tool that FARM Participants can choose to implement with their dairy producers. The tool is meant to help farms:

• learn about HR and safety management best practices;
• identify which best practices will be most useful to implement on their farm; and
• track improvement over time.

Also, by performing on-farm evaluations, FARM Participants can provide important assurances to supply chain customers: our dairy buyers and retailers.

The evaluation tool was developed in consultation with the FARM WFD Task Force and Working Group members, along with subject matter expert input.

FARM is also getting direct feedback from dairy producers through a pilot program that runs through the end this year. Nine cooperatives have volunteered to test the evaluation tool to solicit feedback. About 60 dairy producers are participating from across the cooperatives. Public Comment will complement the pilot.

After the comment period closes on Jan 20, FARM staff, the WFD Task Force and the NMPF Executive Committee will review and consider revisions based upon the comments, then present a final proposed evaluation tool for approval by the NMPF Board of Directors in March. The FARM Program encourages all those involved in the dairy supply chain to participate. To review the draft evaluation tool and provide feedback, please visit this link.

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The National Milk Producers Federation, based in Arlington, VA, develops and carries out policies that advance dairy producers and the cooperatives they own. NMPF’s member cooperatives produce more than two-thirds of U.S. milk, making NMPF dairy’s voice on Capitol Hill and with government agencies. For more, visit www.nmpf.org.

Created by the National Milk Producers Federation in partnership with Dairy Management Inc, the National Dairy FARM (Farmers Assuring Responsible Management) works with all U.S. dairy farmers, co-ops and processors, to demonstrate to dairy customers and consumers that the dairy industry is taking the very best care of cows and the environment, producing safe, wholesome milk and adhering to the highest standards of workforce development.

ARLINGTON, Va. – One of America’s many innovative dairy companies, Chobani Inc., is drawing attention with a new line of oat-based products meant to capitalize on diverse consumer tastes.

In reality, the real game-changer is likely to be its new line of dairy creamers, which will go a long way toward getting the delicious taste of real cream (rather than chemically-colored white liquids made from vegetable oil) into more U.S. coffee cups – a market that dwarfs the plant-based beverage sector

But amid the inevitable publicity about a dairy company developing a non-dairy product, it’s important to note something else about what Chobani’s doing: They aren’t using dairy terms on their plant-based offerings. And that proves an important point, as the U.S. Food and Drug Administration considers updates to its labeling guidelines on dairy terms: Responsible marketers follow the law, and they don’t have to falsely call a plant-based beverage “milk” to compete.

One of the biggest mischaracterizations of dairy-farmers’ positions on plant-based beverages is that they somehow want to “stifle” them. Um, no. Consumers simply deserve products that call themselves what they are – and as people who know a lot about milk, dairy farmers aren’t keen on sharing that term with imitators who use dairy terms to peddle goods that offer inferior, wildly varying levels of nutrition, misleading consumers into thinking those products have benefits that they don’t.

Chobani Oat exposes the fallacy of cries from plant-based manufacturers that their products must be called milk, or cheese, or whatever – or else consumers might be confused. Standing up for labeling transparency isn’t only honest, it’s commercially viable. And don’t just ask Chobani. Ask Trader Joe’s …

 

 

 

 

 

 

 

 

 

Or Sunnyside Farms …

 

 

 

 

 

 

 

 

 

 

 

 

 

Or Pacific Foods …

 

 

 

 

 

 

 

 

Or Dream Plant Based Beverages (a division of Hain Celestial) …

 

 

 

 

 

 

 

 

Contrary to what plant-based lobbyists want consumers to believe, dairy farmers embrace responsible competition and understand that proliferating choices are a 21^st-century reality. That’s why products like dairy/plant-based blends are entering the marketplace, and that’s why a smart company like Chobani adds both oat beverages and milk-based creamers to its offerings.

But the competition should be based on merit, not manipulative marketing. Plant-based is one of several classes of beverages competing with milk for consumer dollars, and after 40-plus years of false and misleading labeling, it’s still only managed to gain about a ten percent share of the milk market. And though plant-based is far from milk’s biggest competitor (that would be water), it’s the only one whose manufacturers insist on calling their products “milk,” “cheese,” “butter” and “yogurt,” directly trying to use dairy’s success against it.

Until the bad actors stop violating existing regulations on their own – or the FDA begins enforcing its own rules — we commend the companies who do labeling right. They’re showing integrity, and more of that is badly needed to help consumers make the best decisions for themselves and for their families.

 (Note: NMPF’s Dairy Defined explores today’s dairy farms and industry using high-quality data and podcast interviews to explain current dairy issues and dispel myths.)

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The National Milk Producers Federation (NMPF), based in Arlington, VA, develops and carries out policies that advance dairy producers and the cooperatives they own. NMPF’s member cooperatives produce more than two-thirds of U.S. milk, making NMPF dairy’s voice on Capitol Hill and with government agencies. For more, visit www.nmpf.org.

ARLINGTON, VA. – Deadlines for Dairy Margin Coverage program signup and Market Facilitation Program payments are nearing for dairy farmers, and the National Milk Producers Federation is urging producers to visit their local Farm Service Agency offices to take advantage of programs meant to provide risk management tools for farmers and provide some relief against financial hardship.

Dairy Margin Coverage signup for 2020 coverage runs through next Friday, Dec. 13. The popular DMC program, which paid dairy farmers more than $308 million in benefits for 2019, offers insurance against low prices and high feed costs. All farmers who signed up for 2019 are encouraged to re-enroll for 2020, given the unpredictability of dairy markets. Farmers who elected to enroll for the full five-year life of the program need to visit their FSA office to keep their information current for the upcoming year.

The second tranche of 2019 Market Facilitation Program (MFP) payments, which USDA announced in November, is designed to help farmers suffering from damage due to foreign trade retaliation against U.S. agricultural products. In the past, NMPF has urged USDA to enhance payments for U.S. dairy farmers by using current production data.  Signup for the payments runs through this Friday, Dec. 6.

NMPF has a resource page on its new website with more information about the program, including this 4-page brochure summarizing key facts about the DMC and this video specific to 2020 signup.

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The National Milk Producers Federation (NMPF), based in Arlington, VA, develops and carries out policies that advance dairy producers and the cooperatives they own. NMPF’s member cooperatives produce more than two-thirds of U.S. milk, making NMPF dairy’s voice on Capitol Hill and with government agencies. For more, visit www.nmpf.org.

(Note: NMPF’s Dairy Defined podcast explores today’s dairy farms and industry using high-quality data and podcast-style interviews to explain current dairy issues and dispel myths.)

ARLINGTON, Va. –  Dairy’s future will depend on its next generation of farmers, many of whom are already hard at work on farms across the country. Young farmers are an important part of the agricultural landscape, and their continued involvement and leadership is needed to preserve a bright future for our dairy cooperatives. Ensuring these farmers can sustain their livelihoods is critical to the future of the dairy industry.

The average age of all U.S. farm producers in 2017 was over 57 years, continuing a long-term trend of aging in the U.S. producer population, according the U.S. Department of Agriculture. That’s in part because younger farmers face unique challenges, said Paul and Nancy Pyle, owners of a 150-cow dairy in Zeeland, Michigan. They’re members of the Michigan Milk Producers Association and chairs of the National Milk Producer Federation’s Young Cooperators Program. They work hard to ensure their milk is wholesome and responsibly-produced, but “it doesn’t matter how good your product is. If you can’t make money selling it, there’s a problem,” Nancy said.

To listen to the full podcast, click here. You can also find the Dairy Defined podcast on Spotify,  SoundCloud and Google Play. Broadcast outlets may use the MP3 file. Please attribute information to NMPF.

ARLINGTON, Va. – “Disruption” is a present-day buzzword, and dairy has had its share. From the globalization of markets to the rise of plant- and cell-based competitors, farmers are grappling with a shifting landscape, even as dairy farms themselves have changed.

But none of that is as personally disruptive as a missed milk check – the interruption of the cash flow that’s necessary to keep a dairy operating. That’s the disruption some farmers have worried about in recent weeks, following the Dean Foods bankruptcy announcement. It’s one we at National Milk have followed closely, and it’s one that forcefully reminds us of the value of the cooperatives we serve, from their farmer-owners to the consumers who depend on them.

Cooperatives have played a crucial role in protecting their members’ economic interests for more than a century. As the industry deals with the uncertainty surrounding what the processing landscape will look like post-Dean Foods, hundreds of dairy farmers have no doubt been wondering what ultimately will happen to their milk as the bankruptcy sorts itself out.

Some cooperative members might be among those wondering — but their membership in a co-op can help provide more certain answers. Finding markets for milk is what cooperatives do, 365 days a year, regardless of disruptions that may develop. With the strength of the co-op backing them up, farmers know they have expertise and networks they can rely upon to help handle the unexpected. Even in temporary situations when milk deliveries exceed processing capacity, co-op members still have steady, predictable access to markets for their milk.

When processors struggle, co-ops help protect farmers and consumers. Cooperatives also allow farmers to become processors themselves, giving them more opportunity to profit from the production and sale of dairy products and react to changing consumer tastes. It’s no surprise, for example, that as the popularity of butter has risen, the number of cooperative-owned processing plants has risen by 8 percent since 2012, and that the cooperative-created volume of popular dairy products such as butter is rising.

This all comes down to the essence of what a cooperative is: a self-help organization in which farmers stick together in good times and bad – sharing in profits and navigating through difficulties.

Protection against supply-chain disruptions was one of the reasons cooperatives formed the National Milk Producers Federation in 1916. Public desire to see farmers succeed pushed adoption of the Capper-Volstead Act of 1922, which allowed farmers to gain greater influence in their own markets. That same collaborative spirit led NMPF in the 1930s to push for the Federal Milk Marketing Order system, which levels the playing field for farms of all sizes in all parts of the country, helping harmonize pay for producers regardless of the end use of their milk while stabilizing prices for consumers nationwide.

And it animates our efforts to the present day, through initiatives such as Cooperatives Working Together, which helps boost U.S. dairy exports, and NMPF’s own collaborations with organizations including Dairy Management Inc., the U.S. Dairy Export Council, the National Council of Farmer Cooperatives, the International Dairy Foods Association and numerous other dairy groups that span states, regions and the globe.

Cooperatives, to be sure, can’t completely insulate anyone from disruption. But dairy is resilient, and cooperatives are fundamental to that resilience. Despite changing consumer tastes and never-ending, inaccurate campaigns against them, per-capita U.S. consumption of dairy products last year was its highest since 1962. Exports are again rising despite trade turbulence, and with potential new leadership at the U.S. Food and Drug Administration, we’re even more hopeful that our decades-long battle against milk imitators who inappropriately claim our product names will be resolved in our favor.

Dean’s bankruptcy is creating uncertainty for some producers. But seen from another angle, it’s just another disruption this sector will be able to withstand, due in no small measure to the strength of cooperatives and their dairy farmer-owners. That’s worth remembering as disruption continues to challenge dairy.  We’ve always been a much stronger industry when farmers have worked together. That’s true today, and it will remain true in the months and years to come.

(Note: NMPF’s Dairy Defined explores today’s dairy farms and industry using high-quality data and podcast interviews to explain current dairy issues and dispel myths.)

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The National Milk Producers Federation (NMPF), based in Arlington, VA, develops and carries out policies that advance dairy producers and the cooperatives they own. NMPF’s member cooperatives produce more than two-thirds of U.S. milk, making NMPF dairy’s voice on Capitol Hill and with government agencies. For more, visit www.nmpf.org.